Papua New Guinea PRIME Minister James Marape says in addition to legal entitlements, the State’s take in P’nyang is 63 per cent compared to 49 per cent in the PNG LNG project and 51 per cent in the Papua PNG project.
He returned yesterday from an 11-day trip to the United States where he met with the ExxonMobil president for Upstream Liam Mallon, and the senior executive team.
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| Papua New Guinea PRIME Minister James Marape |
PNG executed the Heads of Agreement (HOA) on the P’nyang Gas Agreement plus an equity purchase HOA with ExxonMobil.
He was accompanied by Petroleum Minister Kerenga Kua, Justice Minister Bryan Kramer, Gulf Governor Chris Haiveta and Hela Governor Philip Undialu.
“The Gas Agreement HOA captures key fiscal, regulatory and licensing terms negotiated over the last two months.
“The Equity HOA provides that the State acquire at cost 10 per cent additional equity from ExxonMobil in the P’nyang project,” he said.
“The overall deal reflects a win-win for both sides.
“This is made possible by increase production levy of 3 per cent and the State equity (including the commercial purchase) being 32.5 per cent compared to just 19.6 per cent in the PNG LNG and 22.5 per cent in Papua.”
Marape said the deal made P’nyang an investment grade bankable project, “meeting the project partners’ investment thresholds and gives it the best chance of going into construction”.
He said P’nyang would involve synergy with the PNG LNG project.
“However, we have to take time to renegotiate with ExxonMobil to ensure that the State wins big in the overall project economics that empowers Western and its landowners as well as ensuring that the PNG LNG benefits are not diluted but improved for landowners and provincial governments.”
Marape said the “little wait has brought us to the point where we have commercially negotiated a better take-back for our country”.
“I thank ExxonMobil for its willingness to enter into the discussions with an open mind to allow best outcome for landowners and provincial governments.
“I was equally happy to hear of the company’s assurance to look into certain legacy issues in the PNG LNG project.”
The National / Statement / Pacific Mining Watch
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